China Announces 'Foreign Company Blacklist' Regulations Targeting the US

[Asia Economy Reporter Choi Saeng-hye] On the 19th, the Ministry of Commerce of China announced regulations regarding the "Unreliable Entities List" targeting the United States.

According to China's state-run Xinhua News Agency on the 20th, the Ministry of Commerce disclosed the related regulations on its website the previous morning, stating that they are "aimed at foreign companies and individuals that harm China's sovereignty, security, and development interests."

According to the regulations, companies that violate market transaction principles by cutting off normal transactions with Chinese companies or that take discriminatory measures against Chinese companies are subject to the list. It is essentially a "blacklist."

China had announced last year, after Chinese companies such as Huawei were sanctioned by the U.S. Trump administration, that it would publish a list penalizing foreign companies harmful to Chinese companies. However, the Ministry of Commerce has not yet released the list.

On the 17th (local time), the United States announced that it would ban downloads of Chinese apps WeChat and TikTok within the country starting from the 20th, citing security threats. However, on the 19th (local time), the TikTok ban was postponed by one week, and U.S. President Donald Trump said he would allow an agreement permitting TikTok to continue operating in the United States.

The announcement of the Ministry of Commerce's regulations on the Unreliable Entities List came before this. Foreign companies placed on the Ministry of Commerce's blacklist will be prohibited or restricted from engaging in import-export activities related to China or investing in China. Related individuals may face restrictions on entering China or have their visas or residence permits revoked. The Chinese government may impose fines or take "other necessary measures."

A Ministry of Commerce official told this newspaper regarding the Unreliable Entities List, "The scope is strictly limited to a very small number of foreign companies and will not be expanded arbitrarily." He added that the timetable and target companies for the list have not been determined.